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SEMAFO Reports Net Income of $8.9 Million for the First Quarter 2009

SEMAFO TSX-SMF
Record Gold Production of 58,100 ounces
MONTREAL, May 12 /CNW Telbec/ - SEMAFO (TSX: SMF) today reported its
first quarter financial and operational results for the three-month period
ended March 31, 2009. All amounts are in US dollars unless otherwise stated.
Highlights
- Gold production of 58,100 ounces
- Cash operating cost of $460 per ounce
- Gold sales of $49,495,000
- Operating income of $11,173,000
- Net income of $8,902,000 or $0.04 per share
- Cash flow from operating activities of $18,500,000
- Long-term debt reimbursement of $5,207,000
SEMAFO realized a fourth consecutive quarter of record production, with a
total of 58,100 ounces of gold for the three-month period ended March 31,
2009. This represents a 102% increase over the corresponding period in 2008.
The Company recorded an operating income of $11.2 million for the quarter,
compared to $2.8 million in 2008. This significant growth is directly
attributable to Mana's contribution to SEMAFO's overall results.
A Word from the CEO
Operationally, SEMAFO achieved a new quarterly production record of
58,100 ounces of gold. This increase is mainly due to the Mana mine, which
began commercial production in April 2008. The Mana mine continued to meet
expectations with its output representing 62% of the Company's total gold
production for the quarter.
SEMAFO realized gold sales of $49.5 million, representing a 94% increase
over the same period last year. Despite the substantial volatility in the
market price of gold during this period, the Company achieved an average
selling price of $923 per ounce. The Company's cash flow from operations
totalled $18.5 million for the first quarter of 2009, compared to $6.1 million
for the same period the year prior.
SEMAFO continued to focus on the efficient and effective management of
its operations, achieving a cash operating cost of $460 per ounce,
representing a 7% improvement over the fourth quarter of 2008
Consolidated Results and Mining Operations
Three-month period ended
March 31
-----------------------------
2009 2008 Variation
-----------------------------
Operating Highlights
Gold ounces produced........................ 58,100 28,700 102%
Gold ounces sold............................ 53,600 28,200 90%
(In thousands of dollars, except amounts
per ounce and per tonne)
Revenues - Gold sales....................... 49,495 25,540 94%
Operating costs............................. 27,515 17,129 61%
Operating income............................ 11,173 2,801 299%
Net income.................................. 8,902 12,502 (29%)
Average selling price (per ounce)........... 923 906 2%
Cash operating cost (per ounce produced)(1). 460 528 (13%)
Cash operating cost (per tonne processed)(1) 31 27 15%
Total cash cost (per ounce sold)(2)......... 513 607 (15%)
(1) Cash operating cost is calculated using ounces produced and tonnes
processed. See the section "Non-GAAP measures" of the Company's MD&amp;A.
(2) Total cash cost represents the cash operating cost plus royalties and
selling expenses as well as the effects of inventory adjustments.
Outlook
In April 2009, the Mana mine produced 11,600 ounces of gold, making a
significant contribution to the Company's overall monthly production total of
19,500 ounces of gold.
Management anticipates ongoing stable production and remains confident
that the Company will attain its 2009 production guidance of between 220,000
and 240,000 ounces of gold.
The Company is well-positioned for the future and remains committed to
the diligent management of operations and to the earnest pursuit of accretion
initiatives and acquisition opportunities.
A conference call will be held at 10:00 a.m. on Wednesday, May 13, 2009
to discuss the Company's quarterly results. Details to access the call can be
found on the home page of the Company's website at www.semafo.com. SEMAFO'S
consolidated financial statements, together with Management's Discussion and
Analysis, are available on its website or at www.sedar.com.
About SEMAFO
SEMAFO is a Canadian-based mining company with gold production and
exploration activities in West Africa. The Company currently operates three
gold mines in Burkina Faso, Niger and Guinea. SEMAFO is committed to evolve in
a conscientious manner to become a major player in its geographical area of
interest, while maintaining principles and strengthening relationships to
increase shareholder value.
Forward-looking Statements
This press release may contain forward-looking statements. These
forward-looking statements include, but are not limited to, statements
regarding the Company's expectations as to the market price of gold, strategic
plans, future commercial production, production targets, timetables, mining
operating expenses, capital expenditures, and mineral reserve and resource
estimates. Forward-looking statements involve known and unknown risks and
uncertainties and accordingly, actual results and future events could differ
materially from those anticipated in such statements. Factors that could cause
future results or events to differ materially from current expectations
expressed or implied by the forward-looking statements include, but are not
limited to, fluctuations in the market price of precious metals, mining
industry risks, uncertainty as to calculation of mineral reserves and
resources, risks related to hedging strategies, risks of delays in
construction, requirements of additional financing and other risks described
in the Company's documents filed from time to time with Canadian securities
regulatory authorities. Although the Company is of the opinion that these
forward-looking statements are based on reasonable assumptions, those
assumptions may prove to be incorrect. Accordingly, readers should not place
undue reliance on forward-looking statements. Readers can find further
information with respect to risks in the Company's Annual Information Form and
other filings with Canadian securities regulatory authorities available at
www.sedar.com. The Company disclaims any obligation to update or revise these
forward-looking statements, except as required by applicable law.